The European Union Summit scheduled to start on Thursday gave some positive cues to the global markets and European markets in particular. On Friday, after the end of the first day of the summit, the leaders agreed to take emergency action to bring down Italy and Spain's spiraling borrowing costs. Discussions are also on for creating a single supervisory body for the euro zone banks by the end of this year.

In an interview with CNBC-TV18, Richard Ross, Global Technical Analyst at Auerbach Grayson said that it was about time and the world was perhaps waiting for this kind of a decisive action from Europe. He believes, it is not too late and will provide the essential boost to the market, allowing it to extend the gains.

Ross is hopeful of extended gains from next week onwards. "We think this is just a first real step towards getting things turned around on the fundamental side. Now we know that prices have already began to heal, the technicals are getting stronger and we think the momentum is building for an extended demand, not just through the next week, but through the summer as well," he explained.

Below is the edited transcript of his interview with CNBC-TV18. Also watch the accompanying video.

Q: What did you make of this nice pop that EU Summit has given us on both sides of the Atlantic?

A: My first reaction is that it’s about time. I think the world has been waiting for somewhat of a more decisive action out of Europe and this is exactly what we would have expected to get.

Unfortunately, we have been waiting for years for this type of decisive action. In our mind, it’s not too late. We think this is just what the market needed. We think we are in a strong technical position to extend the gains that we have seen.

Q: Is this going to be good enough and when you say extend the gains, are you talking into next week or next month or maybe to the end of the year?

A: I think next week and next month is a good place to start. We have had significant pullback. We all are familiar with bear market declines in commodities and emerging markets’ text book corrections in developed markets like the United States and very big decline across Europe as well.

We think this is just a first real step towards getting things turned around on the fundamental side. Now we know that prices have already began to heal, the technicals are getting stronger and we think the momentum is building for an extended demand, not just through the next week, but through the summer as well.

Q: How stronger are these markets or how fragile are these markets to let's say any poor or negative fundamental economic news coming out of either the European continent, the US or even emerging markets like China and India?

A: You took the word right out of my mouth. Fragile was actually the response I was going to give you. But, I realised that prices have pulled back to a degree where a lot of that fragility, a lot of the risks that we still know are beginning to be discounted by prices, they are beginning to be reflected in the market.

Yes, we are still fragile in nature, risk of course remain the macro shot, but let's keep in mind a lot of those risks are being discounted in the prices. That's what has driven prices down to a certain degree along with the macro fears. We continue to be fragile, but we think with prices at these levels, a lot of that risk is discounted.